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Technology Stocks : Novell (NOVL) dirt cheap, good buy?
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To: dwight vickers who wrote (20926)3/10/1998 4:40:00 PM
From: Paul Fiondella  Read Replies (1) of 42771
 
(Off Topic) Japan & China --- Bank of Toyko-Mitsubishi takes out tin cup

The Bank of Tokyo-Mitsubishi, Japan's largest said it cannot meet international capital lending requirements (8%) if the yen falls to 134 or the Nikkei goes down to 14,664 before the end of March and will need $790million in government bailouts. Today it made an application for that amount from the government fund set up to increase bank liquidity and get banks lending again. If approved BTM would sell the government 100 billion yen ($790million) in bonds. Skeptics doubt whether the bank would loosen its already tight money lending policies with the influx of capital. BTM is the most heavily exposed Japanese bank in Indonesia.

Mr. Long vice minister of Trade in the Peoples Republic of China today linked China's continued restraint on devaluing its currency to US support for its entry into the World Trade organization. China is expecting a substantial decline in its trade surplus in 1998 from some $40 billion in 1997. In fact it expects the surplus to disappear because of the severe competitive pressures its exports are under due to the recent round of Asian devaluations.

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If China devalues it will force the Hong Kong currency off its peg to the dollar. BTM coming forward at this time is an indication of the serious problems of bad debt in the Japanese banking system. BTM hasn't revealed the extent of those problems nor is there any requirement to do so in order to get the government money. One merely must be socially responsible.
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